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Glass Packaging is Threatened But Well-Positioned in Niches, According to a New Report by Global Industry Analysts, Inc.

Post Time:Sep 01,2008Classify:Industry NewsView:387

Growth in the world glass packaging industry is expected to be sustained by its strong, and well-entrenched use in packaging prestige drinks such as champagne, beer, and wine among others. Although threatened by substitution from other packaging alternatives, such as, PET bottles, metal cans and paperboard containers, glass packaging is forecasted to retain some of its popularity helped largely by its premium image, and ability to preserve and retain product quality. As one of the most environment-friendly packaging material, the well-developed recycling infrastructure and systems for glass packages gives this packaging type an edge over plastic alternatives.

San Jose, California (PRWEB) September 1, 2008 -- Technological innovations in production and labeling of glass containers, together with rising per capita expenditures and household incomes in developing countries will help sustain the growth of glass packaging into the future. Although plastic packaging has usurped dominance from glass in the food packaging industry, glass nevertheless has retained its popularity in the alcohol beverage industry. The luxury foods, wine, and super-premium spirits industries prefer glass to other materials, given its clarity and superior barrier properties. Among the packaging alternatives available in the packaging industry, glass scores over other materials on ecology, disposal costs, and recycleability. Demand for glass packaging continues to grow strong as the most favored packaging type in upscale natural sodas and juices. When paired with extraordinary graphic images, glass bottled beverages find their way as an elegant serving dinnerware in fine dining establishments.

In the consumer beverages end-use market glass packaging continues to be widely used in alcoholic beverages, while in the non-alcoholic beverages category, plastic packaging has over years, replaced glass especially in the single serve, and large bottled soft drinks segment. Within the alcoholic beverages market, beer constitutes the largest user of glass packaging, accounting for about 50% of all glass container shipments worldwide. In the consumer beverage packaging market, glass is increasingly coming under fierce pricing pressures unleashed by low cost plastic substitutes. The future is expected to witness a further drop in the prices of glass packaging. In the food packaging market makers of potted vegetables, and prepared foods such as dressings, condiments, sauces, jams, and baby foods represent the key end users of glass packaging. Glass is the most preferred material for preserved vegetables in Eastern Europe. Other end uses of glass packaging include pharmaceutical packaging, cosmetic, chemical, industrial, and household products. Products such as perfumes and cosmetics continue to packaged in glass, and unlike the consumer beverage, and food end-use markets, glass container prices in personal care products are expected to rise.

Developing nations such as Asia and Latin America are fast growing markets for glass packaging as compared to North America where glass packaging is losing out to other packaging alternatives. China is expected to emerge as a strategic market as leading manufacturers in the developed countries increasingly shift their production bases to lower labor cost Asian countries. Capital intensity of the glass industry, huge investment needed for plant furnaces, and access to general infrastructure rank as major entry barriers. In addition, regulatory directives in the form of ADF, BTU Tax and Virgin Material Tax can also adversely affect the industry.

The report titled "Glass Packaging Industry: A Global Outlook", published by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report provides a bird's eye view of the industry's landscape, and helps trace the undertones in the market in terms of trends, drivers and challenges. The report also recapitulates recent noteworthy mergers, acquisitions, and other strategic developments. Regional markets briefly abstracted include the US, Japan, Germany, Italy, Spain, UK, China, Indonesia, and Mexico, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 167 companies worldwide.

For more details about this research report, please visit

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

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